NEWS IN BRIEF

COMMISSION President Romano Prodi is due to unveil a strategy next week for boosting public support for the EU by proposing a clearer division of powers between Brussels-based institutions and member states. The governance White Paper argues that national authorities should be consulted at an earlier stage of the EU law-making process and that more powers should be decentralised. It will also consider if regional authorities with significant decision-making powers – such as the German Länder – can be more involved in EU affairs.

European Voice

7/18/01, 5:00 PM CET

Updated 4/12/14, 7:01 AM CET

A US judge on Tuesday dismissed an EU lawsuit against two tobacco firms over charges involving cigarette smuggling. The European Community argued that Philip Morris and RJ Reynolds organised the smuggling that led to lost tax revenue for member states. But Judge Nicholas Garaufis found the EC had no legal standing to bring the suit because it suffered no direct injury.

THE European Commission is clawing back nearly 150 million euro in misspent farm aid from member states because of inadequate control procedures in spending or non-compliance with Union rules. Said agriculture chief Franz Fischler, “Our message to the member states is simple: spend taxpayers’ money properly or we want the money back.” The Greek government will be hit hardest by the decision with a 107-million euro bill.

COMPETITION chief Mario Monti this week unveiled draft rules designed to encourage firms to expose illegal cartels. In a policy paper, he said companies that are first to give officials details of cartels would be granted immunity from any subsequent fines. Punishment would also be significantly reduced for other firms that give ‘added value’ evidence to competition watchdogs.

SINGLE market chief Frits Bolkestein has launched re-hashed proposals on taxation of cross-border savings. Under the new plan – designed to prevent people from dodging local taxes by depositing cash abroad – tax authorities would swap information on interest paid to Union citizens living in other member states. But Austria, Belgium and Luxembourg – which want to keep their bank-secrecy regimes – would be allowed to apply a withholding tax for a seven-year period.

ANNUAL inflation in the eurozone fell to 3% last month, down from 3.4% in May. The European Central Bank has set a target of 2%.